21bitcoin Pioneers Euro Interest Paid Directly in BTC
21bitcoin, an Austrian Bitcoin platform, is now paying interest on customers' uninvested euro balances. The interest rate is 1.21% annual, making it a unique offer in Europe where interest is paid directly in Bitcoin without any conversion fees.
The company claims this is the first time a provider has offered savings interest directly in Bitcoin. According to 21bitcoin's CEO Daniel Winklhammer, 'Building wealth with Bitcoin does not begin with the purchase itself, but with the euros set aside for it.' The interest covers every euro in the account, including cash waiting for the next savings-plan purchase or reserved for an open limit order.
There is no minimum deposit and no lock-up period. 21bitcoin passes on the full interest paid by Volksbank Raiffeisenbank Bayern Mitte eG, a German bank that owns a stake in 21bitcoin since 2023. The money sits in a segregated trust account at the bank as instant-access savings.
Customer euros can be converted into Bitcoin with no additional fees, and the interest rate is variable, subject to German withholding tax. This move follows 21bitcoin's zero-fee Bitcoin savings plan introduced earlier this year.